1. You are right... sort of... the motivation of profit encourage lower costs. Unfortunately... this means if you aren't a corporate CEO or business owner, you don't reap the rewards. This means job cuts, quality cuts, so some fat cat can enjoy a few more millions. Hardly "efficient".
Well, the company that cuts jobs and quality (assuming this makes them more efficient in terms of both production and actual sales) and uses the extra money to pay the CEO will either a) get a better-qualified CEO to run their company, so they will then become MORE efficient, or b) lose out to some company that uses the money for other stuff.
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